How to Easily Combine Manual and Automated Trading for Fast, Real-Time Monitoring and Execution

The advent of electronic trading has meant that the time in between trades has decreased to seconds, making manual trading that much harder. Even so, the knowledge you have acquired through years of trading is still incredibly valuable, which is why having strategy automation software that allows you to combine manual and automated trading, like CYBMIND, means you’ll get the best of both worlds.

Manual Trading vs Automated Trading

When it comes to trading, there are two types of processes you can use.

• Discretionary trading, which is sometimes referred to as manual trading, is the process of having a human being seasoned in the art of investment make the trades themselves. To do this, one needs to know how to invest, how much to invest, and what the entry and exit points should be.
• Automated trading, meanwhile, is done using a computer algorithm that scans and analyses market prices data and other market information to trigger buy-and-sell orders, as well as to manage related positions.

Some traders tend to see discretionary trading as an alternative to fully-automated trading driven by a machine. This should not be the case, as the technology driving automated trading is now advanced enough to offer a slew of benefits. 

So, instead, why not combine manual and automated trading practices for the ultimate boss move?

Why Automated Trading Can Help Discretionary Traders

On the one hand, a human being’s capability to analyse the market and spot similarities and differences, their intuition and gut feeling built over years of experience, and the knowledge of when to take risks and when to stall are still better than any machine algorithm can offer. In fact, some trading signals cannot be coded into an algorithm, because they are too complicated to be reproduced into models for the software to use. 

On the other hand, a machine is faster, consistent, and can easily analyse data based on set parameters. This means that it can react much faster to market changes than any human could. 

As can be seen, both practices have some undeniable benefits, and combining them can truly up your game. For example, by using both you could improve your processes for:

• Automated hedging rebalancing: The discretionary trader can place multiple positions, and then delegate the real-time monitoring of market exposure to the machine. The software can also open and close positions just for rebalancing purposes, making the trade more efficient and leaving you, as the trader, in complete control of your portfolio.

• Automated resizing: A machine’s real-time monitoring capabilities are better than any human’s, but a trader has a better knack for increasing or decreasing the allocation to meet trading parameters. By combining the two, the machine can open new positions, or either reduce or close, other positions to, for example, fit the target leverage exposure.

• Enabling or disabling trading according to market liquidity: A discretionary trader can open positions and then leave the machine to close them if the targets aren’t met. This is particularly useful in risky environments which experience more market liquidity changes. Indeed, through such a combination, the trader can focus on generating trades, while the machine supports them in managing the positions better.

These are only a few examples of how combining manual and automated trading can help you. But to be able to take this step, you’ll need the right software, which we are more than happy to offer at a price that is manageable even by SMEs. 

CYBMIND, With Integrated Spotfire®, Helps You Combine Manual and Automated Trading

CYBMIND has been designed on an Event Stream Processing engine that has the capability to process thousands of messages per second, as well as to quickly trigger multiple actions according to custom rules based on your strategy. 

With its integrated Spotfire® modules, which are used by some of the world’s top financial institutions, it can also connect to various sources, gather data that’s relevant to you, and then group, compare, and contrast it based on your exact requirements. 

More importantly, it does all this in real-time, allowing it to alter your metrics constantly, as well as giving you consistent, up-to-date data that can help you make better decisions.

Improve Your Real-Time Trading Through CYBMIND with Integrated Spotfire®

So, what are you waiting for? Combine manual and automated trading with CYBMIND and its integrated Spotfire® Streaming capabilities to improve your processes. All you have to do is get in touch with us!